Amerityre to Develop Retreads for Medium Commercial Truck Tires
September 30, 2005
BOULDER CITY, Nev. -- Amerityre Corporation (OTC Bulletin Board: AMTY - News) announced it has begun development of a polyurethane tire compound and manufacturing process for retreading medium commercial truck tires with a polyurethane elastomer tread compound. Amerityre believes the retreading process, which has been successfully developed and tested in passenger car tire applications, is a natural fit for the medium commercial truck tire used by tens of thousands of over-the-road truck fleets worldwide.
"The benefits of polyurethane elastomer as a tire compound are evident," said Richard Steinke, President and CEO of Amerityre. "In both endurance and high speed testing our polyurethane compounds have run substantially cooler than rubber. In addition, these compounds have outperformed comparable rubber compounds in both accelerated heat aging and ozone testing," he added. All tests have been conducted by an independent laboratory in accordance with applicable FMVSS or ASTM test standards.
The retreading process developed by Amerityre involves applying the polyurethane tread compound to the rubber tire casing so that the tread locks "seemlessly" to the tire casing without pressure or vulcanization. "Retreading has historically been an effective way for the trucking industry to save money. We believe that using our revolutionary retreading process is going to provide additional money saving advantages to both the trucking and tire retread industry," Steinke said.
The retread development is expected to be completed by the end of the year and another 3 months have been allocated for industry testing and feedback. Following successful completion of industry testing, Amerityre will look to market the manufacturing technology directly to the retreading industry. Based on statistics published by the Tire Retread Information Bureau, of the nearly 37 million replacement tires purchased by truck fleets in the U.S. and Canada during 2004, nearly half were retreads. It has been estimated that the cost of a retreaded tire is approximately 30 to 50% less than the cost of a new tire, while offering comparable safety and comfort.
The retread development program is only one of many polyurethane tire projects currently under development by Amerityre for highway and industrial applications. Amerityre uses proprietary technology and patented methods and processes to manufacture tires from liquid elastomers. Amerityre's technology is significant because it provides for tires to be produced quickly and less expensively than traditional rubber tires and the polyurethane compounds it has developed have significant performance benefits over rubber compounds.
The statements in this release may contain forward-looking statements relating to such matters as anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results to differ materially from the anticipated results expressed in the Company's forward looking statements such as intensified competition and/or operating problems and their impact on revenues and profits margins or additional factors as described in the Company's 2005 annual report on Form 10-KSB and subsequently filed periodic reports.
